Looking back on 2024, by Eric Eriksen
To our members
Colorado’s second oldest rural electric cooperative turned 87 on August 10, 2024. Serving 13,273 meters across the Valley, we grew about .7 percent in 2024. It was one of the wettest years and the second warmest year.
Like we’ve done over the past 87 years, our amazing employees and supportive members will always persevere. Your San Luis Valley Rural Electric Cooperative closes out 2024 financially sound and reliable. We are ready for 2025.
Best Internet provider
Ciello, our independent subsidiary, has been providing high-speed Internet for over 10 years now and serves over 8,400 customers. Voted the “Best Internet Provider” according to the Valley Courier’s contest for four years straight. Thank you, San Luis Valley!!
We are excited to be selected for a $410K USDA grant to serve Spar City, within Mineral County. Grants are very competitive. It was a testimony to our talented people when we were also recognized for the highest application score. The families in Spar City will be receiving access to high-speed Internet and an improved way of life.
In 2022, we received a $2M grant from the USDA to build 54 miles of high-speed Internet service around the areas of Zapata, Capulin and Great Sand Dunes National Park. In December 2024, after two years of project studies and permitting we’ve received the “Go Ahead” authorization from the USDA to proceed with construction— A big milestone!
Welcome to the team
In 2024 we had 54 full-time employees, including Ciello —compared to 52 in 2008. That’s incredible to be nearly the same number of employees in almost 20 years, especially considering we’ve built a large high-speed Internet company with over 8,400 customers and grown 1,105 new electric meters across the Valley.
We welcomed new babies into the SLVREC family, as well as two new employees Boyd Wagner (staking engineer) and Jarrod Dalton (system operator).
Safe work zone
The safety of our employees is paramount— ensuring they can always go home to their friends and families. Setting clear expectations, accountability, education, training, high standards, and a caring culture led by employees is our recipe for an excellent safety program. I observe this every day at SLVREC. I am happy to report in 2024 we reach record safety milestones including over 2 million miles of safe driving, over 747 days of continued no lost time accidents— and our lowest industry benchmark in 10 years.
Crushing 2024 goals
The SLVREC team delivered exceptional achievements for you in 2024, exceeding all six of our industry benchmarks and completing 94 percent of our project goals. We were on time and under budgeted expenses. Thank you for helping me recognize our SLVREC employees. They take great pride in serving you and in achieving one of the most successful years to date. Here are a few notable accomplishments:
• Customer satisfaction better than industry average
• Controllable expenses less than budget
• Reliability better than average
• Launched Electrify & Save Program
• Renewed Collective Bargaining Labor Agreement
• Awarded over $2M in grants
• Upgraded billing software
• Offered improved Internet and phone services
• Launched Lean Six Sigma training
We always ask: What’s best for members?
Thank you for completing our member survey. The ACSI is a national survey that measures how satisfied US consumers are with products and services used. Instead of a percentage, this number represents a weighted average of three key member perception factors: satisfaction, expectation and performance. It helps us learn what we are doing right and what we can do better to serve you. The chart below shows that SLVREC members are happier than most electric consumers across the country. It also shows that we need to constantly work on improving.
Improving system reliability
As our system grows, ages and gets more complicated, it is not surprising to see a long-term historic trend of slightly decreasing reliability here and across the nation. Our goal is to be better than industry reliability benchmarks. This is a real challenge considering the vast diversity, distance and rural landscape across our service area. As reliability challenges are greater here, so are the impacts to rural life. In 2023 we made a strategic focus on reliability with the aid of data analytics, improved construction standards, vegetation management and replacement of aging equipment. We have continued this focus through 2024 and looking ahead. As a result, member reliability has started a new trend of improvement. We are better than in prior years and achieving our goal. You can see this in the graph below showing our annual reliability. Like Tom Bodett, “We’ll keep the lights on for you.”
Rates
Colorado issued a statewide requirement to generate 80 percent renewable energy by 2030. Our wholesale energy provider, Tri-State Generation and Transmission Cooperative, is transitioning to a 100 percent clean energy future. To help fund this energy transition, the Federal Energy Regulatory Commission approved Tri-State’s request to implement a formulary rate process. This means that on Jan. 1 each year going forward we’ll receive a new rate to purchase wholesale power from Tri-State based on a formula. This formulary process won’t affect rates in 2025, but we are likely to see an increase in 2026 and subsequent years. Read more about the FERC approved wholesale formulary rate on Tri-State’s website HERE. You can find detailed REC rate information online HERE.
We are all experiencing the rising cost of everything and the business landscape is changing faster than ever. This is a challenge that affects us right here at home. I wish SLVREC was immune to this but increasing costs do affect the cost of electric service. The SLVREC Board of Directors reviewed a presentation requesting a proposed rate increase beginning April 1, 2025. This was based on an independent third party rate study of our audited financials to validate a cost of service.
Also included were discussions on implementing a Power Cost Adjustment (PCA). A PCA is a means to directly pass through the formulary rate changes from our wholesale provider. Some utilities around the state are already using this methodology to mitigate financial risk from varying costs of power or natural disasters. More information will be coming soon.
2025 Road Map
The SLVREC team has developed a 2025 plan supported by a budget approved at the Dec. 17 Board of Directors meeting. Expect to find the updated 2025 Road Map on our website in the month ahead and presentation at our annual membership meeting. Please reach out to request a “road show” presentation to your business or organization and feel free to walk in and visit anytime.
Here are a few notable goals:
• Develop Wildfire Mitigation Plan
• Complete Microgrid Study (adding batteries to
utility solar projects)
• Develop Cyber Security Plan
• Complete Integrated Resource Study (future
renewable energy projects)
• Member rate engagement
• Develop Technology Plan
• Install SLVREC HQ energy efficiency improvements
• We Care: Employee training & development
We’re here whenever you need us. Connect with us online, in person or through our social media channels. However you choose to connect, please let us know how we can serve you better.
I wish you a Blessed and Happy New Year!